tv The Profit CNBC April 16, 2015 12:00am-1:01am EDT
this partnership with barbara, it's gonna take us to a whole 'nother level we've never been able to reach before. >> okay, here we go. >> tonight on the profit, i meet michael and tina sena... >> three, one, three. >> experienced trainers who own a fitness studio. >> chest up. atta boy! >> the instruction is first-rate. >> nice, high thighs. >> but the business? well, that needs to be whipped into shape. you're not focusing on everything over here. >> i'm telling you, i did what i thought i could do. >> michael refuses to bring in workout equipment... >> i just don't want to be like every other gym. >> i wouldn't work out there. which holds back membership. >> i may challenge him. >> what we're doing isn't working. >> that's such crap, and you know it. >> but it's his ego that may ultimately bring down this business... >> nobody would recognize her name. they would recognize my name first. >> and possibly even his relationship. >> since we got married, you're always worried about your own identity. >> but everybody has their own identity. >> if i can't figure out a way
to expand pro-fit and attract new customers, they will never turn a healthy profit. my name is marcus lemonis. i fix failing businesses. so the business only made 50,000? i make tough decisions... you can't train every class. and i back them up with my own cash. i like [bleep] done right the first time. >> that's not on me. >> it's not always pretty. >> he starts bringing in equipment here, i'm gonna break into hives. >> but this is business. the deal's off. i do it to save jobs, and i do it to make money. this the profit. [hip-hop music] ♪ pro-fit is a small group personal training studio located in the town of dyer, indiana. while national gyms offers huge facilities and the latest equipment, small gyms like pro-fit offer a much more personalized service in a less intimidating environment. >> we concentrate on doing one thing because without trainers, you can't get results.
>> michael sena has been in the fitness industry for over 35 years... >> change direction. >> first as a body builder, then as a personal trainer. >> i was a personal trainer before there was a personal training industry. i'm a book author, fitness product inventor. it's really been the michael sena show. >> his wife, tina, who owns 50% of the business, is also a personal trainer, as well as a fitness competitor. >> use your core. >> five years ago, the senas spent $75,000, their entire life savings, to build pro-fit. the business has not only drained their bank account... >> i'm really uncomfortable with the fact that we're not seeing a lot of clients. >> but even with four employees, it drains their time, which takes them both away from their four-year-old daughter, mia. >> both: mwah! >> where you been all day? >> juggling 15-hour days with mounting debt has taken its toll on michael and tina's relationship. >> we're supposed to be business partners. >> let me see, was the second or third breakdown that you almost had with me? >> okay. >> now you're gonna walk away. great. >> i receive hundreds of pleas for help every day. >> marcus, can you come help me?
>> we are just a big, hot mess from an organizational standpoint. >> but michael and tina's extensive fitness background along with their passion and their confidence... >> marcus, you're gonna want to be a part of our model. >> got my attention. >> both: ohh! i know if these two are willing to take my lead, i can turn pro-fit into a national brand that can compete with the largest gym franchises in america. [bright music] ♪ the first thing i noticed when i walked up to pro-fit was an empty parking lot, a ton of "for lease" signs, and quite frankly, it felt like a ghost town. this can't be good for business. >> hey, marcus. >> how are you, michael? >> pleased to meet you. michael sena. welcome to pro-fit. >> nice to meet you as well. >> thanks for coming in. >> well, it's bright in here. >> yeah, well-- >> how many businesses are in this plaza? >> four. >> lot of empty spaces. >> yeah, yeah, yeah. >> how did you pick this plaza? >> i really liked the space 'cause it's open.
nice, high ceilings, and it's 3,600 square feet. >> so, michael, what makes this gym different from every other four walls with paint? >> well, we're not a gym, marcus. >> is there a definition of "gym" that i'm missing? >> we're a small group personal training and wellness facility. >> no spin bikes? >> no. everything is done on your feet. see the cones? they represent our track. we never put more than eight people on the floor. we change the workout every two weeks. >> and what is all--what is all this? >> well, this is our new "sweet sena-sations" line that my wife is really the brainchild of, but they're healthy. they're high-protein. >> huh. so, michael, this is a family business? >> yes, tina and i both own it, 50/50. she contributes, but i mean, you know, it's michael sena's pro-fit. my name's at the top. >> so, michael, what if i come twice a day? >> you can't come twice a day. >> why not? >> 'cause that's--we don't do that. >> oh. so i would need to join another gym if i wanted to swim or use
the elliptical or ride the bike. >> yes, sir. >> i would only come here for specific-- >> results. results. >> do you work out anywhere else? >> no. >> does tina? >> yes. >> why? >> well, she likes to use different equipment that we don't really have here. >> right away, i knew we had a problem. it struck me as odd. i mean, the owner of the gym has to go somewhere else to work out? there obviously is something missing here. what does she do there? >> she gets ready for figure competitions. >> lifting. >> um, figure competitions is-- it's kind of, like, sissy-- [bell jingles] oh, is she here? >> is that tina? >> mm-hmm. >> are you tina? >> tina. >> tina, i'm marcus. >> are you marcus? >> nice to meet you. >> oh, my god, it's great to meet you too. >> you want to know what your husband just said about you? >> what? nice things? >> he said that you're a sissy. >> [gasps] >> no, i said the type of onstage activity you do is kind of-- >> yeah, we don't want to go there. >> [laughs] >> it's--yeah. what do you think about that? >> i think--
>> would you call me a sissy? >> i wouldn't call a woman anything other than "thank you" and "yes, ma'am." >> oh-ho, you're soft. you're soft, marcus. >> whose idea was this place? >> i had vision. >> is that why you didn't put her name on the business? >> thank you. >> i have a 35-year reputation. >> what's the answer to that? why is her name not on the business? >> because nobody would recognize her name. they would on--they would recognize my name first. and we're wor--we're working with a brand, and my-- >> [laughs] did you actually just tell me that? >> yes, i did. yes, i did. she's got to earn her stripes. she's got to earn her stripes. >> are you gonna help me? are you here to help me? >> i'm more motivated to help you than i am him, i can tell you that. >> help me help you help me. [laughing] >> i'm concerned right out of the gates that michael thinks his name is more important than it is. and i think it's getting in the way of him making good, solid business decisions. he's letting his ego drive it, not the numbers.
how much is your rent here a month? >> $5,800. >> are you kidding me? >> no. >> in dyer, indiana, in a plaza that's half-empty? >> it's what everybody pays in this plaza. >> everybody that's not here? what do you generate in a typical class? >> about $120 for every four-person session. >> how many total clients? >> 122. >> and so--i mean, where is everybody? >> well, our next session starts in 30 minutes from now. it's prime hours in the morning, and then prime in the late afternoon, early evening. >> and so in the morning, there's classes? what time? >> there's a 6:00 a.m., 7:00, 8:00, 9:00, 10:00. >> and then what happens the rest of the day? >> so from 11:00 to 3:00, we're empty. >> pro-fit generates $120 per class, and michael says they can have two classes an hour, but they're closed four hours a day. if they were just occupying those classes at a 50% rate, they would generate $480 a day. now, if they were open six days a week, that would be nearly $150,000 a year. >> oh, marcus, i wanted you to try the protein brownies. >> okay.
>> everything's labeled for you. it's only 41 calories. >> did you come up with all these recipes yourself? >> i did. i'm a sweets person, and i wanted a healthier alternative, so i just started throwing some stuff together to see how it tasted. >> they taste good. >> [laughs] >> tina's homemade protein snacks are excellent, and adding juice and snacks to a gym--i mean, a fitness studio--are good ways to add additional lines of revenue. so you went into your kitchen and started whipping stuff up? >> five minutes, everybody! when was last time you worked out? >> actually, this morning. >> is there any time you want to come out on this floor? >> whenever you want. >> [laughs] yeah, yeah, yeah. >> i have to be honest with you. let's do it. >> nice, tall chest. >> nice, strong in the core. chest up. rotate! >> okay, straight arms. straight arms. that's it. >> 20! arms straight. >> i had a great workout, and michael and tina really know what they're doing. i feel like i worked out every muscle in my body, and i got great personal attention. >> watch--whoa! [laughs] >> i'm convinced if more people knew about this place, it would
be packed all day long. >> come on, marcus! go! be a warrior! >> time! walk and water. walk and water. >> time! good job. >> nice job. >> good job, guys, nicely done. >> i think you got some potential. >> so does your business, so we're even. >> [laughs] i know! there's no secret about that. [hip-hop music] ♪ >> so, michael, what would the total revenue be for the year? >> let's you and i have a man-to-man about the numbers. i'd rather-- >> well-- >> well, she's not familiar with them, so-- >> yeah. you know you're the boss, right? >> r--[laughs] oh, i'm trying. >> i mean, she's a part owner, right? >> and i probably should know more. >> last year, we made about $50,000. >> what was your total revenue? >> 429,000. >> you don't know much about business. [dramatic music] ♪
>> [sighs] >> michael has a lot of bravado, but anytime you start asking questions and poking at someone's business, it starts to really peel back the onion, and i think it's the first time in a long time that he actually feels vulnerable. >> it's just not always easy. it's not always easy. money gets in the way more often than not. >> is a hard to talk about this kind of stuff? >> no. [stammers] yeah, i don't like to--you think i like to stand next to a man like you and in front of my other people and admit that i can't be successful? i mean, you got to be kidding me. >> listen to me. this is what people don't know about business. if you don't have emotion, and you don't have passion, and you don't love what you do, then you shouldn't be in business, because money is a byproduct. it's not the purpose. and you have a purpose. but you gotta be honest with yourself.
>> i feel like you're oprah. you made me cry. >> i'm not trying to be. i'm--i'm trying to--listen. >> nobody's ever seen me cry here. you made me cry. you're oprah. [upbeat rock music] ♪ >> what is it that you guys need from me? let's just put it on the table. >> we certainly need your business expertise. >> absolutely, 100%. >> what else? >> we need your consulting. >> i'm not a consultant. i only spend my time on businesses that i invest in, and i don't invest in things that i don't like. ever. it's people, process, and product for me, and if the boxes don't check, i check out. >> do you like our business? >> i like the product. i like what you stand for. i like what your intentions are. i think your execution is terrible. i'm gonna make my first offer. >> [laughs] >> but it's gonna be to tina. >> i want to invest in your baked goods business, but i want
it to be outside of this business, and i want you to learn how to be an entrepreneur by yourself with your own accounts and your own systems and your own process. i want to brand it with your name and your face, and i'm gonna provide you a kitchen to be able to make everything. >> [laughs] >> the protein bar market is very competitive, but i know tina's bars could stand out. they're packed with protein, and they taste great, not like most protein bars that have an aftertaste. if i can fix the packaging, i know we stand to make a lot of money. so we'll start with 50,000 bucks. >> okay. >> i get the first 50,000 back, and after that, we split it 50/50. >> i wasn't expecting this, and i feel like i wouldn't want to just make a decision right this second. >> i'm providing the working capital, the facility, the bakers, the raw materials, the systems, the distribution, the processing-- >> but you're asking for 50%. >> you're arguing with me over 50% when i'm providing all the resources. >> i'm not arguing. i'm letting her--my wife and life partner know what decision
you're... >> well, she--i mean-- >> asking her to make right now. >> but she knows. she can interpret, right? >> okay, can i think about it, or do we--do i have to-- >> no, you have to decide right now. >> you should ask for my two cents now. >> you're gonna offer it, so go ahead. what do you want? your name on her brownies just like pro-fit? >> i have no problem not having my name on them. >> well, why would your identity be on it? >> yeah. >> well, because we're partners. that's why. >> her identity's not on yours, on your place that you're partners. >> oh, come on. stop. >> but it's not. >> i'm not gonna get into that. i'm not gonna get in a pissing match with you. >> yes or no, tina? [dramatic music] ♪ coming up... >> why you after me? >> this is not about me or you or who--this is about marketing and making money. >> and later... you didn't execute. you're telling me now because you failed at it. >> you want to walk out of my
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>> let's do it. >> you sure? >> let's do it. yep. >> okay. we got a deal. >> let's do it. we're doing it. >> okay. i get the first 50,000 out. >> okay. >> and we split everything, and i provide all the resources. you just have to market your fanny off. >> okay. you got it. >> tina's product is fantastic, so this was an easy decision to make. i've already invested millions in the health food space, and i think her product has a lot of potential and could lead the pack. >> thank you. >> okay. >> can i hug you again? >> yep. >> [laughs] thank you so much. >> okay? >> it's amazing, thank you. >> all right. >> what happened to my offer? >> i don't believe in singular use facilities. you cannot make a standalone group session training model work in the long run. i don't think it's possible. it doesn't mean that i didn't have a good workout. it's just an economic thing. so my offer is the following. i'm willing to put up
$250,000, but it's contingent on this business moving to a training facility that also has other disciplines inside of it so that we don't have to be so singular. >> but i'm on the lease for another three years, marcus. >> i know, and you have to really figure out a way to get out of the lease, because i want to move to a bigger place at a better location. and that's your responsibility to get that part of it done. >> [sighs] well, it's gonna be tough, but i'll handle it. i'll take care of it. >> so if i put up the $250,000... >> mm-hmm. >> i will own 75% of that business, but i'll put up all the money. >> 25%? i've always owned 100% of everything. [dramatic drumbeat] you want a decision now too. >> i do. >> do you want to talk about it a second, or do you want-- >> no. [tense music] ♪ [sighs] ♪ i'd be honored and humbled to
work with you, i think. >> yeah. >> i know so. >> we got a deal? >> we got a deal. >> deal. >> okay, great. >> thank you, sir. >> pro-fit is a great product, but it needs a lot of work to make it into a profitable business. i have faith it'll get there, but it will require michael to give up control and be open to change. there's $250,000 for 75% of the business. we have a lot of work to do. >> mm-hmm. >> actually, all three of us do. it's hard to run two businesses at once, so we're gonna need to divide and conquer. both of you need to keep a laser focus on your specific areas. michael, i want you working exclusively on the gym, and tina exclusively on the food line. it's the only way we're gonna be successful. let's get to work. >> let's do it. >> all right? >> thank you, marcus. thank you very much. [exciting music] ♪ >> morning, guys. i wanted to bring everybody together to kind of give you guys an update on what happened yesterday. i made a deal with michael, and
the deal is i agreed to put up $250,000. michael and i will be partners. i'll own 75%. michael will own 25%, and i will be completely in charge. i make all of the decisions. the $250,000 will go towards building a new, state-of-the-art lifestyle facility that will give us what i believe is going to be a one-stop shop environment. we're gonna find a new, larger facility that can accommodate not only the existing pro-fit workout, but a healthy cafe and bakery and a cold-pressed juice bar. we're also gonna add other fitness areas and other personal services, everything from spinning to yoga to group session training to life coaching to diet plans to all of those things. when you add more choices, and you add this fit lifestyle concept to a business, you're gonna attract more customers, which is gonna result in more money. we will improve the product, and we're gonna develop a brand that's a scalable outside of northwest indiana. i also found another product of
that i think is gonna be explosive in the market, which is tina's food product. i want to let everybody know that i made a deal with tina. her and i are gonna take the protein snack market by storm. i put up $50,000 in working capital, and tina and i are gonna be 50/50 partners. my goal is to get tina's protein bites on the shelf of a major grocery store chain. in order to do that, we have to standardize production so we can control the costs and the taste. we also have to come up with some very unique packaging so that it really stands out. it's important to note, i need you guys to be supportive because tina won't be spending as much time here. she's gonna be focusing on being a woman entrepreneur. tina, are you ready for this? >> yes. >> so today is a new day. i will be completely in charge, which is a change for michael. but things are going to change, okay? so we have a lot of work to do. >> great. >> let's do it. >> all right, let's get to work. >> let's do it. >> it's just got--i guess it's gonna be challenging to me.
it's just that he emphasized it so much. >> yeah, right. >> that he's gonna make the decisions. >> he's gonna--right. >> i may, you know, challenge him on that. >> he--obviously he's got some ideas on what he wants to do. >> but it--it drives me nuts. i'm still an exercise physiologist. i'm still a trainer. my dog bowl should be bigger than his. >> what we're doing isn't working. so i respect that you want to stick to your guns, but if it's not paying our bills, then we might have to rethink it. >> that's such crap, and you know it. >> my first order of business for pro-fit is to find us a larger location to move into. so i'm taking michael to an available space that i found that i think achieves that. it's gonna be close to three times the amount of rent we pay today, but i think it's worth it. there's a lot of traffic here. >> right. >> in a business like our business... >> right. >> we need to have a lot of eyeballs. >> right. >> and look at the number of cars driving by. it's busy.
how are you? i'm marcus. >> dave van dyke. >> hi, dave, nice to meet you. >> hey, dave, michael sena. >> you mind if we just take a tour? >> yeah, no, that's no problem. >> how many square feet? >> 20,000 square feet. >> okay. >> whoa, that's huge. that's a lot. now i'm sweating. [exhales] oh, my god, this much space? lot of employees. >> yeah. a lot of revenue. >> that's a lot of payroll. >> a lot of revenue. restaurant on one side or the other. >> [exhales] >> spinning, yoga, gym, group training, spa. >> [sighs] so you're thinking we need all that stuff in here? maybe we'd start a little smaller, right? >> this place is for big boys. you got to put your big boy pants on. >> yeah? you don't think i have my big boy pants on?
>> no. 'cause you know what big boys do? they recognize the fact that they're not always right. michael seems totally overwhelmed by the big space, but i know with this size facility, i could have at least nine streams of revenue. what i like about that is if one part of the business is struggling, i have eight others to hold up the fort. michael, i'm only interested in investing in pro-fit in a larger space, a multi-use facility. that's it. and i will not do business with you unless you reset your mind. you have to learn how to not be a control freak. >> [sighs] >> you have to learn to think about your wife as having more stripes than you. you have to get out of your lease. >> gotta be like harry houdini. that's gonna be a challenge. >> you gotta figure it out. i'm concerned about michael getting out of this lease. admittedly, it's a difficult task, but in order for me to be comfortable with him running the business, i need to know that he can problem-solve, and i've only given him one thing to do. [upbeat music] ♪ >> everybody on the bikes.
here we go. level 12, 80 rpm's. >> hi, tina. >> hi, marcus. >> how are you? >> how are you? i'm good. >> i brought erica and jeff with me. >> hi. >> hi, it's nice to meet you. >> the next order of business is for us to work on packaging for tina's protein snacks. in order for us to be successful, we have to come up with something creative, and it has to be unique. >> erica and jeff are part of my ad agency. they're gonna be really working with you to kind of develop packaging, branding-- >> okay, great. fantastic. >> so "sweet sena-sations." did you guys come up with this caricature? >> we did come up with it. >> i think that it cheapens your look. >> i would agree. um, i honestly feel that a caricature belongs at a carnival. >> okay. i'm totally open. >> these are just preliminary. >> okay. oh, i like the capsule. >> so the first phase of product that i want to hit the market with is not a bar shape. >> okay.
>> i want something round. what i'd like to try to trademark is a protein bite. the best part of protein bites are the size. they're about 1/2 the size of a traditional protein bar. what i love about it is that it gives the consumer a choice of a smaller portion. so everything you make out there in a bar, we have to figure-- >> bite size. it's bite size. >> yeah. >> it's a pop. it's one bite. tina, what does it cost you to make each bite? >> it's roughly 50¢ to 75, depending on which bite it is and what the ingredient is. >> so i think the challenge we're gonna have is that thing's got to get down to 10¢, so we have a lot of work to do on terms of cost. >> for sure. um-- >> and there's different things that we can-- >> what flavors will we have? >> double dark chocolate. >> i mean, we could certainly do a coco-- >> hey, guys, sorry to disturb. >> hey, michael. >> just wanted to say hello, see what you're doing. >> double dark chocolate, peanut butter, white chocolate raspberry. >> just going over some pack-- >> what was it, mint? >> that's right. >> who came up with that shape? >> these guys did. >> very interesting. [tense music]
♪ why you after me? >> this is not about me or you or who--this is about marketing and making money. >> mm-hmm. >> so, egos aside, names aside, it doesn't matter. it's about what's gonna sell. ♪ >> i specifically told michael to look after the gym, and he has a lot of work to do in getting out of the lease. he needs to focus his attention where it's absolutely needed. >> we've already talked about it. >> abs--i know, i know. ♪ [bleep]. >> coming up... >> i've done a lot of [bleep] for you. >> you talk too much. >> you know what, this is--no. >> you're talking too much.
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>> yeah? what's wrong? >> i kind of feel like the third leg with the whole bar thing. >> we gotta get past this. this divide and conquer thing is something you're not getting your head around. when we talked, it was about you focusing on the gym and her focusing on the sweet side of things. i mean, you have a lot on your plate already, right? >> yeah, yep. >> i wanted to bring you here today so we could look at some equipment, so let's-- >> yeah, all right. >> let's make our way around. you know, the kind of things that i'm looking for, ellipticals, treadmills... >> yeah, yeah. >> things that are gonna really get people to come back and want to be part of our organization. >> right. but i opened up pro-fit to keep it in a small group model, and i don't want people just jumping on a treadmill. >> for you to make money, you have to start thinking differently. it frustrates me that michael continues to push back on changing the model. i'm confident that if we add new equipment, that we're not only going to attract new customers, but we're gonna retain the ones we have now for a much longer period of time. all of that equals more revenue.
>> i just don't want to see this place open up to be like every other gym. >> what exists today is a very singular-focus offering. i wouldn't work out there. tina doesn't even work out there. she's got to go somewhere else because it's missing certain parts and pieces. so here's what i would say. humor me and pretend like you actually think this is a good idea. >> all right. [energetic music] ♪ >> these are 1,000 apiece? >> yeah. >> so i'll take 12 of them. >> okay. >> this is about $5,000? >> yes. >> so you probably need about eight of 'em, michael. >> okay. >> the electromagnetic-style resistance rowers will give you more levels of resistance. >> you're losing. let's get six of these. >> six of those. >> and what was the total? >> 58,904. >> okay. enjoy this while we can, 'cause you'll be buying the next round when we grow. >> you got it. ♪ >> i'm excited to get started with launching tina's protein bites, so i've taken her to
rose's, a gluten-free bakery that i own in chicago. i want her to spend time in the kitchen with the chefs so she can learn how to mass-produce her bites. >> hi, marcus. >> hi, tina. >> how are you? good to see you. >> hello, marcus. >> surprised to see you here. >> this is great. >> yeah, yeah. >> shouldn't you be back at the, uh, the gym? >> uh, yeah, but i've got people covering for me and wanted to be with my wife to support her here today. >> but, michael, the only reason i'm bringing this up is we've talked about this. tina's handling the sweets line, and you're handling the gym. and as part of handling the gym, your job is to work on the schedule and work on driving revenue and work on getting out of the lease. >> i got the lease. i-i know you're antsy about it, but-- >> i'm worried that you're not antsy about it, because if we don't get out of the lease, we got a problem. >> [sighs] marcus, with all due respect, i'm gonna take care of it. i got it. >> all right. why don't we head to the back? michael, if you'll have a seat-- >> why am i going to the corner?
>> well, 'cause it doesn't involve you. i'm really getting annoyed that michael continues to focus on the food side of the business. i've been very clear with him that i want him focusing on his part of the deal, which is the gym, not tina's deal. this routine is getting very old. sonya, this is tina. >> hi, sonya, how are you? tina sena. nice to meet you. >> sonya. >> sonya's my head baker. she's the brains behind all these products that you see here. so what i wanted to do today is we want to market tina's products, and the goal is we want them to taste good, and we want them to look good. >> okay. >> when we finish making this, from a business standpoint, we'll know how much went in in raw materials, how much went in in labor, how much went in in packaging-- >> okay. >> currently, it costs tina up to 75¢ to make a single bite. by mass-producing the bite, i can lower the cost to 10¢ per bite. each package will consist of eight bites, which means it'll cost us the 80¢ to make the entire package. we're gonna sell these to retailers for $3 each, yielding
us $2.20 of profit per package. an average order from a national grocery store chain would be between 10,000 and 30,000 units. with only one order, we can make between $22,000 and $66,000 in profit. you first. >> this is like a dream come true right now. >> this is a good start. it's not bad for half a day of work. michael will like these. >> oh, i'm excited. i'm excited. thank you. [background chatter] do you feel excluded? [dramatic drumbeat] >> listen to me. we said--when we met a long time ago, we said we would do everything together. me sitting out here like i'm some chooch-- >> i don't want to get into a fight with you right now. you're pouting like a baby, like once again, something good has happened for me, and that's a problem for you. for the last 12, 13 years, it's been all about michael sena,
michael sena, michael sena. your name's been on everything, and i've never said a word about that. >> oh, it's a one-way street. >> no, but i really think that's what the problem is. i've done a lot of [bleep] for you. >> you talk too much. >> and you know what? this is--no, and this is what-- >> you're talking too much. >> you never let me talk. >> this is what-- >> you're always talking. >> this is what i was worried about, though, when he did make the deal. >> oh, yeah. >> that i was gonna--no. >> i saw your eyes going, ching, ching! >> no. like, you think that's all that matters to me? >> but since we got married, that you're always worried about your own identity. you've only been making this-- and now-- >> but everybody has their own identity. >> you already have your own identity. >> if something good's happening to me, then something good's happening to you and to us. that's how it should be viewed. this shouldn't be a bad thing, and i certainly don't want it to cause a rift. >> it's already caused a rift. >> well-- >> and i gotta swallow it. >> but that's on you. >> okay, now you're the new martha stewart here of the fitness business. >> i'm gonna check the cookies. >> okay, go check your brownies, your cookies, yeah, go ahead. i hope they burn. >> coming up... when you and i made the deal, i was very clear with you. i asked you to do one thing.
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[tense music] ♪ >> robert, come on in. have a seat. thanks for coming in today. >> thanks for having me. >> i'm a meeting with my lawyer to see if i can get out of the lease. i have three years left, and because it's a large commercial lease, not only did i have to sign corporately, but i had to sign personally.
there's a lot of money on the line. listen, did you have a chance to look over the lease? >> i did. >> okay. >> the lease is very long, and it's very landlord-friendly. [dramatic drumbeat] >> tell me something good, please. >> i don't see any way out of it. >> there's got to be something in here. he's got paragraphs crossed out. he's got--i mean i can't let this deal slip through my fingers. there's got to be something. >> there's no way i'm--i can see that you can get out of this lease whatsoever. >> then the bottom line is, i'm screwed. [dramatic music] ♪ [hip-hop music] ♪ >> i'm checking in with michael because he called me and he told me he's really struggling with this lease issue, and he wants to discuss it. hey. >> hey, marcus. >> how are you? >> how you doing, buddy? good. >> you said you wanted to-- >> yeah, yeah. thanks for coming in. [sighs] oh. well, i wanted to talk to you about the lease. you know, unfortunately, i'm not in a position to get out of
this lease. >> what did you do to try to get out of it? >> i read it myself. i know the lease that i signed. >> did you talk to your attorney? >> yeah, and he said that i'm in a ironclad lease. >> did you hire a realtor to find a subletter? >> no, i didn't--i didn't get-- i didn't get a realtor. that i didn't do. >> it sounds like you didn't do everything. when you and i made the deal, i was very clear with you. i asked you to do one thing, and that was get out of the lease. i told you that in the negotiation. i told you when we went to look at space. i told you several times. one thing. >> yeah, but that one thing is challenging. that one thing's very difficult. >> if you didn't agree, and you thought i was being unreasonable while we were negotiating or while we were telling the employees about what was happening, why didn't you tell me then? you're telling me now because you failed at it. >> you're asking me to jump through a ring of fire. >> you're making me out to be the bad guy. what did i do? you don't like the deal that tina got. you're seeing all these good things happen. you're off distracted looking at somebody else's business, and you're not focusing on everything over here.
i wanted you to prove to me that when we're partners and i'm not here, that you can run the business equally as efficiently. you know, i'm pissed because i don't think michael ever intended to change his business model, and i think that's why he did a half-ass job trying to get out of this lease. >> marcus, i'm telling you, i did what i thought i could do. and i--it didn't come through, so, you know, that's it. you want to walk out of my office, go ahead and walk out of my office. >> as far as i'm concerned, the deal's off. [dramatic music] ♪ >> i'm here. >> what's the matter? >> oh, man. >> what? >> i can't get out of the lease. >> what did marcus say? >> he pulled out of the deal. he pulled out of the deal totally. i just feel like i failed you. i failed--i let everybody down. you know, i'm sorry for
interfering so much with you and your business, and, you know, i know you got--you got a lot of great ideas, and, you know, i just feel i've gotten in the way and maybe haven't always respected you the way i should've as my business partner, and i'm sorry for that, honey. >> i forgive you. that's okay. >> it's a big failure, you know, that marcus doesn't want to do business with me. >> no. no, don't feel that way. the gym is still gonna be great. we'll take marcus has told us already, and we'll run with it. >> i'll focus on it. >> we'll run with that. it's all good. >> thanks, baby. >> i love you. >> i love you too. >> both: mwah. >> let's go home. >> coming up... >> sweetheart, look. i got a big surprise for you, my girl. >> oh, my god! no way! [shrieks] >> if your business is in trouble and you need my help, log on to theprofitcasting.com. you can call me shallow...
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stop taking cialis and get medical help right away. why pause the moment? ask your doctor about cialis for daily use. for a free 30-tablet trial go to cialis.com >> hopefully, you'll surprise tina with this. >> yeah, i'm looking forward to it. you know, if it wasn't for tina, i'd have nothing. she's gonna love it. i want to do something to make tina feel better about our relationship as business partners. i'm gonna make some changes around pro-fit, and she's gonna see how earnest my feelings and intentions are. all right, looks good. looks good. i can't wait to see the look on her face. >> hey, babe. >> hey, babe, how you doing? >> i'm good. >> baby, i'm so glad you made it.
>> yeah, i--oh, my gosh. >> i know. sweetheart, look. >> crazy. >> i got a big surprise for you, my girl. >> you d-- oh, my god, no way! [shrieks] and i'm first! >> that's right. >> oh, my god! i can't believe it! >> i've been disappointed with michael in the last several weeks. >> our name in lights. let's get inside. >> but with what i'm seeing right now, i'm shocked, and i'm really happy for them 'cause i'm glad that michael's able to see that it's not always just about him. >> okay, so i've got a few other things i want to show you. >> okay. >> so look up on that top shelf. >> [gasps] oh, my god, no way. oh, my gosh! >> i wanted to do the book as well. >> oh, my gosh. >> so for our second edition-- >> oh, look at that! >> and notice this, "plus tina's fabulous recipes." >> yes. oh, i love it! >> that's not everything. >> wow. >> now, we even went as far as to change all of the collateral material. the business cards, the letterhead, everything. >> oh, fantastic. >> it was time. >> up to this point, michael's
been letting his ego drive all of his decisions. and he needed a wakeup call, and me pulling the deal may have been the wakeup call he needed, 'cause it was not only affecting the business, it was affecting his relationship with tina. now, i have to tell you, i'm impressed by this first move, and i'm starting to look at michael in a whole new light. you know, michael, i have to be honest with you. i know that you had what i would call a colossal failure in not getting out of the lease, which is why we didn't do our deal. that was the only condition i had. but the success that i see in these gestures, i had nothing to do with this. unprompted, he goes out on his own. you changed the sign, and you changed the book. those kind of gestures trump any sort of business failure. when you're doing business with people, it comes down to character, and the character that you demonstrated here is much bigger than the fact that you failed at getting out of the lease. so i want to do something small with you. what we'll do is we'll do some stuff in here.
i'll give you the money you need to kind of grow the business, and we'll perfect the model, and it's still my goal to build it into a national brand. and now i know who i'm doing business with. >> thank you. >> okay? i'm proud of you. [electronic music] ♪ now that i've decided to move forward, we're gonna go very quickly. despite the fact that we're gonna be stuck in our old location for a few years, i'm committed to expanding the current pro-fit to a multi-use facility. a drywall's gonna go up here with beautiful graphics and retail cubbies. the renovations at pro-fit will cost well over $100,000, but it'll be worth every penny. first, i'm adding a cold-pressed juice bar up front so customers can grab a healthy beverage anytime. there'll actually be a hallway here. it's gonna be further back. i'm adding additional rooms that'll offer services like spin, yoga, massage, and pilates, so customers can take more classes and we can generate more revenue. my team and i are completely dissecting this box. [power tools whirring]
[funky music] ♪ >> we have 1,500 square feet for yoga, pilates, spin, and massage. we've got a good thing going here. we just need that to go to the next level. >> hey, guys. >> hey, look who's here. hey, marcus. >> what do you think? >> oh, boy. >> uh-- >> so far? >> it, uh... doesn't look like i thought it would, and it doesn't look great. why are the offices on this side? >> well, i put 'em on this side, and what i was thinking was, let's keep these away from any noise in here. >> this is different than the layout we talked about. i can't believe what i'm seeing. michael and i had a very specific agreement on what this floor plan was gonna look like when i left last time. if we're gonna be business partners, he's got to trust the process, and he's gotta go along with the plan. and if he wants to change it, he's got to check with me. the layout we talked about is,
you came through this door, and there was a hallway, and i went right or left. >> did you want the hallway all the way through? >> because i wanted to be able to expand. now i'm blocked in. the hallway was supposed to separate the group training area from the individual workout and massage rooms. this way, the individual classes and the massage room would not have to listen to the blaring music coming from the group exercise room. the hallway had a purpose to it. how do i get out? [dramatic drumbeat] fofor business advice and d exta scscenes from the show, gogo ono cnbcbc.com/the-profit. driver-assist systems. it recognizes pedestrians and alerts you. warns you about incoming cross-traffic.
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the hallway had a purpose to it. how do i get out? sorry, i jumped off-- >> yeah, i know you're getting mad at me, but you told me... >> i'm not mad. i'm fru-- >> go with it and make my own decisions. >> yeah, i didn't think you would change the whole floor plan. i like [bleep] done right the first time. >> mm-hmm. >> you know, michael's a headstrong individual, and while i want to empower people to do their job, he really overstepped his boundaries. there's not much we can do about it now. we just need to make the best of it. but i can't have this happen again. >> i take responsibility. i do. >> all right, well, you take responsibility. >> i am taking it. >> you fudged up the hallway. >> okay. other than that, you like the place, don't you? [laughter] i mean, it's got appeal. >> pro-fit's renovation will be done in a few days, and in the meantime, tina has perfected her recipe for her protein bites. today, we're pitching it to mariano's, a grocery store chain that has 14 locations throughout chicago. >> don, good morning. >> we're pitching protein bites
made with all plant-based protein. >> it's very good. very good. what i like is i don't have the--the protein aftertaste that you get in a lot of bars. >> okay, good. >> can we be exclusive with this item? >> absolutely, please do. love mariano's. >> tina's hard work is really paying off. she just closed an order for 3,000 packages of her protein bites. we're gonna make about $7,000 on that one order alone. at this pace, i should get my money back within 18 months. >> hello, marcus. >> hey, marcus, how you doing, my brother? >> welcome to the new pro-fit. >> yeah. >> business is booming for pro-fit. we've signed up nearly 100 new members. we've hired yoga and spin instructors that are teaching classes throughout the day. michael and tina have been able to strengthen their relationship and are now looking forward to the future. >> oh, my gosh. >> i can't believe it!
>> tonight on the profit... i go inside worldwide trailers, a custom trailer manufacturer in tampa, florida. and so is this essentially a commercial kitchen? >> yep. >> that's your serving area. >> co-owners struggle to work together after their nasty breakup. >> you're a pathological liar, is the way i look at it. >> i can't work with you. >> i have my work cut out for me. for me, it's all about business. >> none of it would've-- should've been anything except for business. >> i need to put the controls in place... my name isn't going on this if it looks like this. there's no way. >> we do track our money. >> but no, you don't track your money. and make sure these bitter rivals can work together. >> yeah, you got that right! >> my name is marcus lemonis, and i fix failing businesses. i don't know how you run your business this way. i make tough decisions. i can tell you for damn sure, you're replaceable.